Fieldtech Avionics & Instruments, Inc. v. Component Control. Com, Inc.

262 S.W.3d 813, 67 U.C.C. Rep. Serv. 2d (West) 30, 2008 Tex. App. LEXIS 6057, 2008 WL 3186185
CourtCourt of Appeals of Texas
DecidedAugust 7, 2008
Docket2-07-329-CV
StatusPublished
Cited by76 cases

This text of 262 S.W.3d 813 (Fieldtech Avionics & Instruments, Inc. v. Component Control. Com, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fieldtech Avionics & Instruments, Inc. v. Component Control. Com, Inc., 262 S.W.3d 813, 67 U.C.C. Rep. Serv. 2d (West) 30, 2008 Tex. App. LEXIS 6057, 2008 WL 3186185 (Tex. Ct. App. 2008).

Opinion

OPINION

ANNE GARDNER, Justice.

Appellants Fieldtech Avionics & Instruments, Inc., Kevin Nelms, and David Mills appeal from the trial court’s grant of summary judgment in favor of Appellees (1) Component Control.Com, Inc., d/b/a Component Control; and (2) CitiCapital Technology Finance, Inc., d/b/a Bankers Leasing and Softech Financial, and CitiCorp USA Inc., d/b/a CitiCapital, CitiCaptial Finance, Inc., Bankers Leasing, and Sof-tech Financial (collectively, CitiCapital). We reverse in part and affirm in part.

Background

Fieldtech is an avionics parts supplier. Component Control is a commercial software company. On August 24, 2001, Fi-eldtech signed a proposal generated by *818 Component Control to acquire “Quantum Control Software 2K.4” (“the software”) from Component Control. Fieldteeh financed the transaction through a finance lease agreement with CitiCapital whereby CitiCapital acquired the software from Component Control and leased it to Field-tech. Nelms and Mills — Fieldtech’s president and secretary, respectively — personally guaranteed the lease. The transaction involved several documents: the proposal; a software maintenance agreement; the lease agreement and an associated property schedule and certificate of acceptance; and a “clickwrap agreement,” an electronic agreement provided by Component Control that Fieldteeh had to accept before it could download and install the software. 1 We will examine the relevant documents and testimony concerning their execution later in this opinion.

Fieldteeh allegedly learned that the software was incompatible with its business operations when it sent two employees to Component Control for software training in January 2002. Fieldteeh sued Component Control and CitiCapital in October 2003. Fieldteeh sued Component Control for breach of contract, breach of warranty, and violations of the Deceptive Trade Practices Act, alleging that Component Control had represented that the software would meet Fieldtech’s business needs. Fieldteeh sued CitiCapital for breach of contract and for a declaratory judgment, seeking a declaration of its rights under its lease agreement with CitiCapital. CitiCa-pital filed a counterclaim against Fieldteeh and third-party claims against Nelms and Mills, seeking to enforce the lease and Nelms’s and Mills’s guarantees.

After nineteen months of discovery, Citi-Capital filed no-evidence and traditional motions for summary judgment, and Component Control filed a combined no-evidence and traditional motion for summary judgment. Fieldteeh filed timely summary judgment responses. The trial court eventually granted summary judgment in favor of Component Control and CitiCapi-tal and' awarded CitiCapital $95,105.55 in damages and $28,205.83 in attorney’s fees. Fieldteeh, Nelms, and Mills filed this appeal.

Summary Judgment Evidence

The parties presented the following relevant summary judgment evidence to the trial court.

1. Component Control’s proposal

Component Control’s proposal is a one-page printed document listing the software, software modules, installation, training, and maintenance to be provided by Component Control and the price for each item, with a total quote of $86,224.94. The area labeled “[pjlease sign to confirm your order” was signed by David Mills on August 24, 2001, and a line labeled “check here for third-party leasing” was checked.

2. The clickwrap license agreement

Lisa Wortman, Component Control’s director of contract administration, averred that when a user attempts to install the software on a computer, a clickwrap li *819 cense agreement appears on the computer screen, and the software will not install unless the user signifies acceptance of the license agreement. Wortman attached two versions of the license agreement to her affidavit. The first version is printed on Component Control letterhead; the second version, said Wortman, is the actual clickwrap agreement that would have appeared on Fieldtech’s computer screen. The two versions are identical except that the former contains headings in bold type and the latter does not. Both versions contain the following warranty provisions:

6.3 Limited Warranty Remedies: During a period of thirty (30) days after delivery of the Software to Licensee, if the Licensee claims that the software is defective, Licensor shall either (i) replace such Software, provided that upon inspection by Licensor, Licensor has found the Software to be defective, or (ii) refund the amount paid therefor, if the Licensee returns the defective software to the Licensor with a copy of proof that the warranty period has not expired, and Licensor has verified the defect. Licensee agrees that Licensee’s sole and exclusive remedy hereunder shall be limited to this corrective action.
6.4 Warranty Disclaimer: The express warranties set forth in the Agreement are in lieu of all other warranties, express or implied, including, without limitation, any warranties of merchantability or fitness for a particular purpose.
6.5 Limitation of remedies: Licensee agrees that its exclusive remedies, and Licensor’s entire liability with respect to the Software, shall be as set forth herein. Licensee further agrees that Li-censor shall not be hable to Licensee for any damages, including any lost profits, lost savings, or other incidental or other consequential damages arising out of its use or inability to use the Software or the breach of any express or implied
warranty, even if Licensor has been advised of the possibility of those damages.

3. Master Lease Agreement

CitiCapital and Fieldtech executed a Master Lease Agreement setting out the terms under which CitiCapital leased the software to Fieldtech. Fieldtech agreed to make monthly lease payments of $3,528.85 for thirty months. The lease agreement contains the following relevant language:

1. LEASE. LESSOR hereby leases and/or grants to LESSEE the right to use, and LESSEE hereby leases from and/or agrees to accept the right to use, subject to the terms and conditions herein set forth, the item(s) of personal property including but not limited to the hardware and/or software herein referred to as “Property”.... Each Property Schedule entered into by the parties shall constitute a separate non-caneellable lease agreement....
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4. DISCLAIMER OF WARRANTIES. (A) LESSEE ACKNOWLEDGES THAT LESSEE MADE THE SELECTION OF THE PROPERTY BASED ON ITS OWN JUDGMENT AND IS NOT RELYING ON LESSOR’S SKILL OR JUDGMENT TO SELECT OR FURNISH GOODS SUITABLE FOR ANY PARTICULAR PURPOSE. LESSEE ACKNOWLEDGES THAT LESSOR HAS NOT MADE AND DOES NOT MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, DIRECTLY OR INDIRECTLY, INCLUDING, WITHOUT LIMITATION, THE WARRANTY OF MERCHANTABILITY AND OF FITNESS, CAPACITY OR DURABILITY FOR ANY PARTICULAR PURPOSE, AND WARRANTIES AS TO THE DESIGN OR CONDITION OF THE *820 PROPERTY AND THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF THE PROPERTY.

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Bluebook (online)
262 S.W.3d 813, 67 U.C.C. Rep. Serv. 2d (West) 30, 2008 Tex. App. LEXIS 6057, 2008 WL 3186185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fieldtech-avionics-instruments-inc-v-component-control-com-inc-texapp-2008.